3rd Quarter Results-Part 2
AstraZeneca PLC
24 October 2002
Part 2
Consolidated Profit & Loss Account For Continuing Operations
2002 2001
For the nine months ended 30 September (Restated)
$m $m
Sales 13,153 12,040
Cost of sales (3,480) (3,250)
Distribution costs (102) (89)
Research and development (2,177) (1,955)
Selling, general and administrative expenses (4,337) (3,984)
Other operating income 225 304
Operating profit before exceptional items 3,282 3,066
Exceptional items charged to operating profit - (126)
Operating profit 3,282 2,940
Share of joint ventures' and associates' operating profits - -
Profit on sale of fixed assets - 10
Net interest and dividend income 24 101
Profit on ordinary activities before taxation 3,306 3,051
Taxation (886) (864)
Profit on ordinary activities after taxation 2,420 2,187
Attributable to minorities (12) (7)
Net profit for the period 2,408 2,180
Dividends to Shareholders (398) (405)
Profit retained for the period 2,010 1,775
Earnings per Ordinary Share before exceptional items $1.39 $1.28
Earnings per Ordinary Share $1.39 $1.23
Diluted earnings per Ordinary Share $1.39 $1.23
Weighted average number of Ordinary Shares in issue (millions) 1,736 1,762
Diluted average number of Ordinary Shares in issue (millions) 1,739 1,764
Consolidated Profit & Loss Account For Continuing Operations
2002 2001
For the quarter ended 30 September (Restated)
$m $m
Sales 4,350 3,950
Cost of sales (1,181) (1,064)
Distribution costs (37) (29)
Research and development (757) (614)
Selling, general and administrative expenses (1,468) (1,324)
Other operating income 14 96
Operating profit before exceptional items 921 1,015
Exceptional items charged to operating profit - (45)
Operating profit 921 970
Share of joint ventures' and associates' operating profits - -
Profit on sale of fixed assets - -
Net interest and dividend income 2 23
Profit on ordinary activities before taxation 923 993
Taxation (242) (280)
Profit on ordinary activities after taxation 681 713
Attributable to minorities (6) (2)
Net profit for the period 675 711
Dividends to Shareholders - -
Profit retained for the period 675 711
Earnings per Ordinary Share before exceptional items $0.39 $0.42
Earnings per Ordinary Share $0.39 $0.40
Diluted earnings per Ordinary Share $0.39 $0.40
Weighted average number of Ordinary Shares in issue (millions) 1,728 1,757
Diluted average number of Ordinary Shares in issue (millions) 1,730 1,759
Consolidated Balance Sheet
2002 2001
As at 30 September (Restated)
$m $m
Fixed assets 9,023 7,929
Current assets 11,557 11,137
Total Assets 20,580 19,066
Creditors due within one year (6,916) (6,391)
Net current assets 4,641 4,746
Total assets less current liabilities 13,664 12,675
Creditors due after more than one year (491) (909)
Provisions for liabilities and charges (1,596) (1,795)
Net assets 11,577 9,971
Capital and reserves
Shareholders' funds and minority interests 11,577 9,971
Consolidated Cash Flow Statement
2002 2001
For the nine months ended 30 September $m $m
Cash flow from operating activities
Operating profit before exceptional items 3,282 3,066
Depreciation and amortisation 700 633
Decrease/(increase) in working capital and other non-cash
movements 153 (436)
Net cash inflow from operating activities before exceptional
items 4,135 3,263
Outflow related to exceptional items (74) (280)
Net cash inflow from operating activities 4,061 2,983
Returns on investments and servicing of finance 42 137
Tax paid (678) (631)
Capital expenditure and financial investment (1,034) (990)
Acquisitions and disposals - (44)
Equity dividends paid to Shareholders (820) (830)
Net cash inflow before management of liquid resources and
financing 1,571 625
Net (purchase)/issues of shares (871) (702)
Exchange and other movements 56 (51)
Increase/(decrease) in net cash funds in the period 756 (128)
Net cash funds at beginning of period 2,867 3,605
Net cash funds at end of period 3,623 3,477
Notes to the Interim Financial Statements
1 BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited financial statements for the nine months ended 30 September 2002
have been prepared in accordance with UK generally accepted accounting
principles. The accounting policies applied are those set out in AstraZeneca
PLC's 2001 Annual Report and Form 20-F except that, in the current period,
AstraZeneca adopted Financial Reporting Standard No. 19 'Deferred Tax'. Prior
periods have been restated and the effects of this restatement were to reduce
profits for the nine months ended 30 September 2001 by $28m and reduce net
assets at that date by $164m. On adoption net assets at 1 January 2002 were
reduced by $193m. The table below illustrates the effect on EPS before
exceptional items of this restatement.
The statements do not constitute statutory accounts of the group within the
meaning of Section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 December 2001 have been filed with the Registrar of Companies.
The auditor's report on those accounts was unqualified and did not contain any
statement under Section 237 of the Companies Act 1985.
2001 TAXATION AND EARNINGS PER SHARE BEFORE EXCEPTIONAL ITEMS
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Year
Tax charge before adoption of FRS 19 ($m) (316) (269) (286) (282) (1,153)
Tax charge after adoption of FRS 19 ($m) (315) (289) (295) (315) (1,214)
Published EPS before adoption of FRS 19 ($) 0.45 . 0.42 0.43 0.47 1.77
Adjusted EPS after adoption of FRS 19 ($) 0.45 0.41 0.42 0.45 1.73
2 JOINT VENTURES AND ASSOCIATES
The group's share of joint ventures' sales for the nine months to 30 September
2002 amounted to $184m and $171m for the comparative period. Share of joint
ventures' operating profits for the nine months to 30 September 2002, and for
the comparative period, were $nil.
3 NET CASH FUNDS
The table below provides an analysis of net cash funds and a reconciliation of
net cash flow to movement in net cash funds.
At 1 Jan Cash Other Exchange At 30 Sept
2002 flow non-cash movements 2002
$m $m $m $m $m
Loans due after 1 year (635) 14 284 - (337)
Current instalments of loans (107) 41 (284) (3) (353)
Total loans (742) 55 - (3) (690)
Short-term investments 3,118 596 - 32 3,746
Cash 705 (11)* - 22 716
Overdrafts (195) 48* - (1) (148)
Short-term borrowings, excluding
overdrafts (19) 12 - 6 (1)
3,609 645 - 59 4,313
Net cash funds 2,867 700 - 56 3,623
Issue of AstraZeneca PLC Ordinary
Shares (25)
Repurchase of AstraZeneca PLC
Ordinary Shares 896
Net cash inflow before
management of liquid resources and
financing 1,571
* Movement of $37m on cash and overdrafts corresponds to increase in cash during
period as defined under UK GAAP.
4 LEGAL PROCEEDINGS
Further to note 36 to the Financial Statements found on page 94 in the
AstraZeneca 2001 Annual Report and Form 20-F wherein reference is made to
various investigations into drug marketing and pricing practices in the US, the
US Department of Justice has been conducting an investigation into the sales and
marketing of Zoladex (goserelin acetate implant). The Company has been informed
that the investigation was prompted by the filing of a qui tam complaint by a
private party and involves allegations of improper submission of claims to the
Medicare program. The Company is cooperating with the investigation, which is
ongoing. While it is not possible to predict the outcome of the investigation,
management is of the opinion that the ultimate disposition should not have a
material adverse effect on AstraZeneca's financial position or results.
5 NINE MONTHS TERRITORIAL SALES ANALYSIS
% Growth
Nine Months Nine Months
2002 2001 Constant
$m $m Actual Currency
USA 6,963 6,425 8 8
Canada 423 383 10 12
North America 7,386 6,808 8 8
France 826 701 18 15
UK 486 551 (12) (13)
Germany 512 511 - (3)
Italy 551 457 21 18
Sweden 210 199 6 5
Europe others 1,610 1,400 15 12
Total Europe 4,195 3,819 10 7
Japan 663 591 12 19
Rest of World 909 822 11 14
Total 13,153 12,040 9 9
6 THIRD QUARTER TERRITORIAL SALES ANALYSIS
% Growth
3rd 3rd
Quarter
Quarter
2002
2001 Constant
$m
$m Actual Currency
USA 2,244 2,166 4 4
Canada 150 129 16 16
North America 2,394 2,295 4 4
France 289 219 32 17
UK 156 181 (14) (20)
Germany 177 163 9 (3)
Italy 172 120 43 26
Sweden 72 57 26 10
Europe others 524 430 22 9
Total Europe 1,390 1,170 19 6
Japan 251 202 24 23
Rest of World 315 283 11 13
Total 4,350 3,950 10 6
7 NINE MONTHS PRODUCT SALES ANALYSIS
World US
Nine Nine Constant Nine
Months Months Actual Currency Months Actual
2002 2001 Growth Growth 2002 Growth
$m $m % % $m %
Gastrointestinal:
Losec 3,578 4,287 (17) (17) 2,221 (22)
Nexium 1,323 295 n/m n/m 1,031 n/m
Others 45 30 50 50 13 -
Total Gastrointestinal 4,946 4,612 7 7 3,265 7
Cardiovascular:
Zestril 748 832 (10) (10) 435 (12)
Seloken 652 554 18 17 445 27
Atacand 413 289 43 41 155 48
Plendil 355 332 7 6 151 13
Tenormin 275 300 (8) (6) 42 (2)
Others 270 314 (14) (15) 14 (70)
Total Cardiovascular 2,713 2,621 4 4 1,242 6
Respiratory:
Pulmicort 580 570 2 1 246 23
Rhinocort 226 194 16 15 160 26
Symbicort 194 34 n/m n/m - -
Accolate 95 115 (17) (16) 66 (20)
Oxis 91 94 (3) (5) - -
Others 106 116 (9) (10) - -
Total Respiratory 1,292 1,123 15 14 472 15
Oncology:
Zoladex 595 519 15 16 163 6
Casodex 465 393 18 18 138 (18)
Nolvadex 348 446 (22) (21) 244 (27)
Arimidex 242 139 74 73 105 119
Iressa 26 - n/m n/m - -
Faslodex 19 - n/m n/m 19 n/m
Others 15 22 (32) (32) - -
Total Oncology 1,710 1,519 13 13 669 (5)
CNS:
Seroquel 804 526 53 53 651 49
Zomig 237 209 13 12 128 8
Others 23 16 44 44 5 -
Total CNS 1,064 751 42 42 784 40
Pain, Infection and Other
Pharma:
Diprivan 331 329 1 2 163 10
Merrem 218 162 35 35 53 43
Local anaesthetics 311 332 (6) (5) 76 (17)
Other Pharma Products 205 280 (27) (27) 59 (31)
Total Pain, Infection and Other
Pharma 1,065 1,103 (3) (3) 351 (3)
Salick Health Care 170 144 18 18 170 18
Astra Tech 108 90 20 19 8 60
Marlow Foods 85 77 10 9 2 -
Total 13,153 12,040 9 9 6,963 8
n/m not meaningful
8 THIRD QUARTER PRODUCT SALES ANALYSIS
World US
3rd 3rd Constant 3rd
Quarter Quarter Actual Currency Quarter Actual
2002 2001 Growth Growth 2002 Growth
$m $m % % $m %
Gastrointestinal:
Losec 1,223 1,421 (14) (16) 798 (18)
Nexium 493 168 n/m n/m 378 n/m
Others 15 9 67 67 4 -
Total Gastrointestinal 1,731 1,598 8 6 1,180 6
Cardiovascular:
Zestril 189 188 1 (3) 84 2
Seloken 206 204 1 (2) 139 (1)
Atacand 132 93 42 33 38 31
Plendil 149 120 24 20 76 33
Tenormin 85 87 (2) (5) 5 (38)
Others 89 94 (5) (14) 3 (79)
Total Cardiovascular 850 786 8 3 345 4
Respiratory:
Pulmicort 150 161 (7) (12) 52 (10)
Rhinocort 80 64 25 22 60 30
Symbicort 72 20 n/m n/m - -
Accolate 28 20 40 40 19 73
Oxis 30 29 3 (7) - -
Others 34 35 (3) (12) - -
Total Respiratory 394 329 20 13 131 14
Oncology:
Zoladex 208 175 19 14 58 12
Casodex 191 149 28 22 73 3
Nolvadex 86 160 (46) (47) 51 (59)
Arimidex 96 47 104 98 42 163
Iressa 26 - n/m n/m - -
Faslodex 11 - n/m n/m 11 n/m
Others 4 7 (43) (43) - -
Total Oncology 622 538 16 12 235 (11)
CNS:
Seroquel 200 169 18 16 144 5
Zomig 69 55 25 18 30 67
Others 8 13 (38) (38) 2 -
Total CNS 277 237 17 14 176 12
Pain, Infection and Other
Pharma:
Diprivan 105 114 (8) (10) 50 (18)
Merrem 76 56 36 34 20 33
Local anaesthetics 155 136 14 12 43 2
Other Pharma Products 16 55 n/m n/m 3 n/m
Total Pain, Infection and Other
Pharma 352 361 (2) (4) 116 (17)
Salick Health Care 57 49 16 16 57 16
Astra Tech 37 28 32 18 3 50
Marlow Foods 30 24 25 17 1 -
Total 4,350 3,950 10 6 2,244 4
n/m not meaningful
Shareholder Information
ANNOUNCEMENTS AND MEETINGS
Annual Business Review 7 November 2002
Announcement of fourth quarter and full year 2002 30 January 2003
results
Announcement of first quarter 2003 results 30 April 2003
Annual General Meeting 2003 30 April 2003
Announcement of second quarter and half year 2003 24 July 2003
results
Announcement of third quarter 2003 results 23 October 2003
DIVIDENDS
The record date for the first interim dividend paid on 7 October 2002 (in the
UK, Sweden and the US) was 23 August 2002. Ordinary Shares traded ex-dividend
on the London and Stockholm Stock Exchange from 21 August 2002. ADRs traded
ex-dividend on the New York Stock Exchange from the same date.
The record date for the second interim dividend for 2002 payable on 7 April 2003
(in the UK, Sweden and the US) will be 21 February 2003. Ordinary Shares will
trade ex-dividend on the London and Stockholm Stock Exchange from 19 February
2003. ADRs will trade ex-dividend on the New York Stock Exchange from the same
date.
Future dividends will normally be paid as follows:
First interim Announced in July and paid in October
Second interim Announced in January and paid in April
TRADEMARKS
The following brand names used in this interim report are trade marks of the
AstraZeneca group of companies:
Accolate Arimidex Astra Tech Atacand Atacand HCT Casodex Crestor
Diprivan Exanta Faslodex Iressa Losec Merrem Nexium Nolvadex Oxis
Plendil Prilosec Pulmicort Pulmicort Respules Rhinocort Rhinocort Aqua
Seloken Seroquel Symbicort Tenormin Toprol-XL Zestril Zoladex Zomig
Zomig ZMT
ADDRESSES FOR CORRESPONDENCE
Registrar and Depositary Registered Office Swedish Securities Register Centre
Transfer Office for ADRs VPC AB
The AstraZeneca Registrar JPMorgan Chase Bank 15 Stanhope Gate PO Box 7822
Lloyds TSB Registrars PO Box 43013 London S-103 97 Stockholm
The Causeway Providence, W1K 1LN Sweden
Worthing RI 02940-3013 UK
West Sussex US
BN99 6DA
Tel: +44 (0)121 433 8000 Tel: +1 (781) 575 4328 Tel: +44 (0)20 7304 5000 Tel: +46 (0)8 402 9000
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
In order to utilise the 'Safe Harbor' provisions of the United States Private
Securities Litigation Reform Act of 1995, AstraZeneca is providing the following
cautionary statement. This Interim Report contains forward-looking statements
with respect to the financial condition, results of operations and businesses of
AstraZeneca. By their nature, forward-looking statements and forecasts involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from that expressed or
implied by these forward-looking statements. These factors include, among other
things, exchange rate fluctuations, the risk that research and development will
not yield new products that achieve commercial success, the impact of
competition, price controls and price reductions, the risk of loss or expiration
of patents or trade marks, difficulties of obtaining and maintaining
governmental approvals for products, the risk of substantial product liability
claims and exposure to environmental liability.
This information is provided by RNS
The company news service from the London Stock Exchange
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